FX Update : USD Bears Back

USD MAJORS: We believe last week's USD gains were corrective and expect EURUSD will challenge 1.3368 once more. USDCHF should be heavy below 1.2291, targeting the 1.1984 bear trigger for 1.1879 and we believe GBPUSD will tackle the 1.9849 trend high again. Elsewhere, AUDUSD remains bullish, with the focus on 0.7990, while USDCAD stands out as the lone USD bull as long as 1.1445 continues to provide a floor.

YEN & YEN CROSSES: The USDJPY recovery is considered corrective below 118.61 and we are watching 116.17 as a bear trigger. EURJPY is constructive above 152.43, targeting 157.11, but support would shift to 153.80 following a break of 155.59.

EURO CROSSES: EURGBP remains vulnerable below 0.6796 and should maintain pressure on the 0.6669 level. EURCHF upside should dominate above 1.5943, targeting 1.6169.